Part 6 - Portfolio Optimisation - Traffic Domains

Part 6 - Portfolio Optimisation - Traffic Domains

If you remember from previous articles the normalised RPM allows us to precisely compare one monetisation provider versus another.

This metric is VERY different from the traditional RPM that is often used more as a marketing tool than an actual unit of measurement. The normalised RPM is the revenue from every monetisation source divided by the raw unfiltered traffic, times by one thousand.

nRPM = Revenue / (Raw Traffic) x 1000

Escrow.com

The chart below is one that shared at Domaining Europe and highlights a number of opportunities for domain investors. The first is on average, direct advertisers pay considerably more for traffic compared to Google based sources.

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How to do a Domain Traffic Test – Paying Attention to the Right Number

How to do a Domain Traffic Test – Paying Attention to the Right Number

In the previous articles in this series I discussed the importance of baseline data and what you should be measuring. I’m now about to dive into the most important metric that you can ever use to evaluate the success of a traffic test, the normalised revenue per thousand visitors.

I want to apologise to all those readers where mathematics isn’t your strength….that’s OK. I will try and make this article as simple as possible so that it gets across the point.

Escrow.com

Many domain owners have learned to pay attention to the revenue per thousand visitors (RPM) that is produced by the various parking companies. The reason for this is that it takes into consideration the variation in the traffic levels for each domain. So really what is RPM? The formula for RPM is the following:

Revenue / visitors x 1000

This makes sense until you get under the both revenue and visitors. For a start, visitors is actually filtered traffic and since each parking company filters traffic differently than this number changes for each company. Another way of viewing visitors is:

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